Thursday , April 22 2021

Oil is heading back to Asia at a profit catch

Singapore (awp / afp) – Oil prices fell Friday in Asia due to profits after hitting the highest levels in six months, but the impact on the offer of increased sanctions against Iran continues to be decisive.

About 0335 GMT, Barrel Lightweight Sweets (WTI), the US crude reference, fell by 38 cents to 64.83 dollars in electronic exchanges in Asia for delivery in June.

The price of Brent, a European reference, for June, is 20 cents to $ 74.15.

On Thursday, oil exceeded $ 75 a barrel in Europe for the first time in six months, amid concerns about a supply shortage caused by the sharpening of US sanctions against Iran, but he failed to stay in the fence.

Brent's price ended at $ 74.35 in London, down 22 cents from late Wednesday. In New York, Light Sweet Crude Oil (WTI) lost 68 cents to $ 65.21.

"After touching the six-month highs, oil contracts are affected by profits," said Geoffrey Halley, an analyst at Oanda.

"A pause to catch your breath is welcomed and welcomed," he added.

Prices were rising earlier due to the cancellation earlier this week of US exemptions that allowed some countries to import Iranian crude despite sanctions from Washington.

The cancellation of these exceptions remains, according to Stephen Ines of SPI Asset Management, the main factor in the evolution of prices at the moment.

President Donald Trump decided on May 2 to end the derogations that still allowed eight countries (China, India, Turkey, Japan, South Korea, Taiwan, Italy and Greece) to import Iranian crude oil, to "zero export" and "deprives the regime of its main source of income," the White House reported.

The United States is pressing Saudi Arabia and other OPEC members to increase production to offset the decline in supply.

However, OPEC and several of its partners in an informal alliance called Opel + are bound by an agreement that was reached to reduce production to raise prices.

"Investors continue to wonder what will be the response to OPEC's products and the US shale producer," Ines said.

MBA / JAC / h

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